South & Central America Artificial Intelligence in Defense Market Forecast to 2028 -Regional Analysis

The South & Central America artificial intelligence in defense market is expected to grow from US$ 130.93 million in 2023 to US$ 184.15 million by 2028. It is estimated to grow at a CAGR of 7.1% from 2023 to 2028.

Increasing Government Spending on Defense Fuels South & Central America Artificial Intelligence in Defense Market

As geopolitical tensions have persisted over the last few years, various affected nations plan and take measures to improve and recapitalize their defense budget and strategies. Changes in the modern warfare system have been urging governments to allocate high funds for respective military forces. Budget allocation enables military forces to procure advanced technologies and equipment from domestic and international manufacturers. Also, soldier and military vehicle modernization practices are increasing across numerous countries. Owing to the growing need to strengthen military forces with advanced technologies, armaments, artilleries, and vehicles, defense forces across the region are investing substantial amounts in the aforementioned products. A continuous urge to deploy new technologies in combat and noncombat operations by the defense forces is boosting defense spending. The increasing geopolitical tensions and trade wars among major countries are driving high investments in the defense sector. A significant portion of the investment is dedicated to the procurement of artificial intelligence in defense research. Therefore, the increasing government spending on incorporating AI in the defense sector is driving the growth of the South & Central America artificial intelligence in defense market.

South & Central America Artificial Intelligence in Defense Market Overview

Despite various obstacles encountered by ecosystems in South America, AI is rapidly being implemented in the military & defense sectors to address crucial concerns. The Brazilian government has begun developing public policies on AI. The country is in the process of preparing a national AI policy to ace the international race for leadership and to consolidate the future of segments such as labor, education, tax, research and development, and ethics. South American countries are subject to cross-border tensions and risks, prompting militaries to invest in AI-enabled weaponry and decision support in the battlefield and national security operations. Military expenditure in SAM increased from US$ 37.26 billion in 2020 to US$ 38.18 billion in 2021. Such investments support the adoption of cutting-edge technologies such as AI and ML in the defense sector, which is likely to bolster the South & Central America artificial intelligence in defense market in SAM during the forecast period.

South & Central America Artificial Intelligence in Defense Market Revenue and Forecast to 2028 (US$ Million)

South & Central America Artificial Intelligence in Defense Market Segmentation

The South & Central America artificial intelligence in defense market is segmented into component, technology, platform, application, and country.

Based on component, the South & Central America artificial intelligence in defense market is segmented into hardware, software and services. The software segment held the largest share of the South & Central America artificial intelligence in defense market in 2023.

Based on technology, the South & Central America artificial intelligence in defense market is segmented into advanced computing, ai systems and learning and intelligence. The advanced computing segment held the largest share of the South & Central America artificial intelligence in defense market in 2023.

Based on platform, the South & Central America artificial intelligence in defense market is segmented into naval, land, and air. The land segment held the largest share of the South & Central America artificial intelligence in defense market in 2023.

Based on application, the South & Central America artificial intelligence in defense market is segmented into cyber security, battlefield healthcare, logistics and transportation, warfare platform and others. The warfare segment held the largest share of the South & Central America artificial intelligence in defense market in 2023.

Based on country, the South & Central America artificial intelligence in defense market is segmented into Brazil and the Rest of South & Central America. The Brazil dominated the share of the South & Central America artificial intelligence in defense market in 2023.

BAE Systems Plc; International Business Machines Corp; Lockheed Martin Corp; SparkCognition Inc; and Thales SA are the leading companies operating in the South & Central America artificial intelligence in defense market.